Money transfer

Hello, I am a resident in UK i have received letter from hmrc that i may have to pay tax on overseas income. I dont have overseas income just savings lying in my bank account and a little interest on the. Last year and the year I made bank transfer from my foreign savings account to my UK account Do i now need to declare that in worldwide disclosure facility?

Hi Ruth Berger,

Currently, there are no legal limits on the amount of money you can transfer to the United Kingdom from a foreign bank account to a UK bank account.

 There are no IncomeTax implications on the transfer of inherited money or savings, unless the they generate interest or dividends.

These would then potentially be subject to tax.  

Further guidance can be found here:

Tax on savings interest

Tax on dividends

Thank you. 

Hi Amit Vanjani,

Yes, as a UK tax resident you need to pay tax on your worldwide income.

Thank you.
 

Hi, I want to check, if there is any tax implication in UK if I transfer the money from sale of overseas shares to UK bank account. Thanks

Hi Vipin Kumar,

Their could be.  
You will need to work out if there is any capital gains liability.  
To do this, all parts of the calculation must be in UK pounds sterling (GBP) using the official exchange rates in force at the date of purchas and disposal.  
The official exchange rates to use can be found at (Exchange rates from HMRC in CSV and XML format).  
You are free to choose any of the 3 exchange rates available, from annual average, monthly or spot rate.  
A calculator to help you workout any gains can be found at (Tax when you sell shares).

Thank you.

Hi, I work overseas and pay tax on my salary overseas since July 2022. I earned a salary in the UK since June 2022. My father would like to give me 20k GBP as a cash gift into my UK bank account while I work overseas. What do I need to declare and how? (if needed) Thank you

Hello! My late mother left me a property in another country. I have paid all the inheritance tax for it and had been using the income from that property to pay for my grandmother's care home. I have not been receiving any income from this property. My grandmother has now passed away and I am thinking of selling the property and transferring AROUND £45.000 from my foreign bank account to my UK bank account. Is there anything I would need to do before doing the transfer?

Hi Pronin,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax.  

Further guidance can be found here:

Tax on savings interest

Tax on dividends

Thank you.

Hi Reb88,

An individual, resident and domiciled in the UK is taxable in the UK, on their world-wide income and gains, using the arising basis. This means they are taxable in the tax year in which the income or gain arises. You may be subject to Capital Gains Tax in the UK, on the disposal of the foreign property, using the arising basis, even if you have paid Capital Gains Tax on the disposal in the country the immoveable asset is located.  

If you dispose of the property you will need to work out if there is a gain arising from the inheritance value and the disposal value. Both values need to be converted to pounds sterling using the official exchange rate in use at the time of inheritance and disposal.  

The guidance below will help.

Tax when you sell property

The official exchange rates can be found at:

Exchange rates from HMRC in CSV and XML format 

The residence, domicile and remittance basis may also apply, depending on your circumstances.

Have a look at the guidance at:

Residence, domicile and the remittance basis: RDR1

Thank you.

Hi, In 2020, I relocated to London on a Tier 2 employment visa and continues to be in T2 working visa. Previously, I worked in UAE for 18 years (2000-2018). Up until 2023, my Dubai cash savings were maintained with HSBC UAE. I transferred my savings from my UAE HSBC bank account to my Indian bank account this year since I am no longer a resident of the UAE and my UAE HSBC bank account has been closed. In the event that I transfer my cash savings from my Indian bank to my UK HSBC bank, will I be subject to tax in the UK? Thank you

Hi Vinayan William,

You will not pay tax on the transfer of the capital however, you wil need to declare any interest that is generated.
You will also need to declare any interest that is generated whilst the funds were in Dubai and are in India.

Thank you.
 

Hi, my brother lives in Poland and after many years in court trial he finally won the case against people who didn't pay for jobs he did as a construction company. He won a big compensation and he plan to move to England with family. His lawyer will transfer all his money to UK bank account. Does he have to declare money transfers to HMRC?

I am a BNO Visa holder from Hong Kong. I will move to the UK in July 2023. I am going to use Remittance basis for this first financial year (2023-2024). If I transfer money from my Hong Kong bank account to my UK bank account after April 6, 2023, will this money be taxable? Another question is, if I transfer money from a Jersey bank account to my UK bank account , will this money transferred considered at taxable? Thanks for your clarification.

Hi Mariusz,

He does not need to declare the transfer of the capital. However, he must declare any interest or dividends that this then generates.

Thank you.

I am living here as a resident before one year. I had worked before in Oman for 15 years and had a saving money from my work there . I would like to transfer it to my account here in London as I planed to stay here and have my new work. Do I need to declare this money ? and is there any a limit to to the amount I have to transfer so I should have to pay taxes ?

Hi, I would like to bring money into the UK from the sale of a property abroad. I am currently a UK resident. I made no profit from the sale of the property and there where no taxes to pay on it abroad either. The property was aquired before I was a UK resdent. The money is in a bank account abroad and has earned interest. I know I will need to declare the interest gained but will I need to declare the main sum when I do the transfere? Many thanks

Hi Bryan Lee,

If you are taxable on the remittance basis, you continue to be liable to UK tax on any remittances (amounts) of foreign income and gains that you remit to the UK. The transfer of money from an overseas bank account to a UK account would fall into the 'remittance to the UK' category.                                        

Remittance basis 2021 (HS264)

Thank you.

Hi Emad Mohamed,

There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends. These would then potentially be subject to tax. You can find further guidance here:

Tax on savings interest

Tax on dividends

Thank you.  

 

Hi, I need clarification on the below : 1)I was working in India for 10 years and have some savings like the provident fund in India which I would like to transfer to my UK account. Is this amount taxable and do I need to show it while filing taxes? 2) Also I want to bring some money from India mainly from the redemption of Mutual funds/Shares and Stocks - I have paid tax in India and filed income tax. Do I need to pay tax here? Please advise.

Hi, I am looking to buy a house, and my Father is planning on transferring me a cash gift to use as my deposit to take out a mortgage to buy the house. This sum is over the gift allowance, would I be taxed on this transfer? Thanks!